Interim Results

FIDELITY EUROPEAN VALUES PLC
27 July 1999

FIDELITY EUROPEAN VALUES PLC

Announcement of unaudited interim results 
for the six months ended 30 June 1999

Extract from the Interim Report

Performance
(All figures are total return and expressed in sterling.)  The NAV of the
Company rose 7.7% for the six months to 30 June 1999.  The share price
declined by 3.0% over the same period.  This compares with an increase of 1.0%
in the FT/S&P Actuaries Europe (ex UK) Index (the benchmark index) over the
same period.  The diluted NAV rose 8.6% in price terms over the six month
period.

Market Background
The year started with the smooth launch of the euro, the single European
currency.  Stockmarkets had risen sharply in the lead up to this event as
investors anticipated increased flows of money into European equities. 
However, as the year has unfolded, the performance of equity markets has not
lived up to expectations.

The main reason for the lacklustre performance of markets has been the
slowdown in economic growth.  This has largely been a result of weak export
growth, as well as weak consumer spending in some of the largest economies in
the region, namely Germany and Italy.  In order to boost growth prospects, the
European Central Bank cut interest rates from 3.0% to 2.5% in April.  This
move contributed to a weakening of the euro which, during the first six months
of the year, fell about 15% against sterling.

The weakness in the European economy caused profit growth forecasts to be
revised down for a number of companies.  In addition, the weakness in the euro
served to reduce the attractiveness for foreign investors of investing in
European stockmarkets.

Despite this background, some markets did perform reasonably well.  Markets in
Scandinavia were particularly strong.  The Norwegian market (+24.5%) benefited
from a rise in the oil price to which the economy and a number of companies
are sensitive.  In Sweden (+26.7%), hopes of a recovery in world economic
growth caused a number of industrial exporters to perform well.  The strong
performance from the Finnish stockmarket (+37.7%) was largely attributable to
Nokia, the mobile phone company, which accounts for a large part of the
stockmarket.  The French market also performed reasonably well (+10%).

Among the disappointing performers were Germany (-0.9%), Italy (-7.0%) and
Switzerland (-7.2%).

Portfolio Review
Changes in the portfolio tend to be gradual and this has been the case over
the last six months.  During this period, the proportion of the Company
invested in large companies has remained at about 50%.  Nevertheless, there
remains a bias towards medium and smaller-sized companies.

In general, we favour service-oriented companies rather than industrial
companies and this is reflected in the sectors represented in the portfolio. 
The banking sector accounts for over 15% of the Company's assets.  Some of the
largest holdings are in French banks (eg BNP, Societe Generale and Paribas),
which are currently involved in negotiations regarding being taken over or
merging with one another.  During the period, Deutsche Bank was added to the
portfolio.  It is restructuring its operations following the merger with
Bankers Trust of the US.  Other large holdings in banks include Bank of
Ireland and Credit Suisse.  

The proportion of the Company invested in telecommunications companies remains
high at about 25%, of which about half is invested in mobile phone companies. 
The largest holdings included Telefonica (Spanish fixed line operator),
Mannesmann (German mobile phone operator), Telecom Italia, which was recently
acquired by Olivetti and Europolitan (a Swedish mobile phone operator).  The
holdings in this sector reflect our belief that the prospects for growth in
the number of mobile phone subscribers is very attractive.

Another sector which features in the portfolio is media.  During the period,
shares were purchased in TF1 (French TV company) and this is now one of the
largest holdings in the portfolio.  Shares in Canal Plus were sold.  The
holding in Hachette Filipachi Medias, a French media group, was increased. 
Other holdings in the sector include NRJ, a French radio company and
A-Pressen, a Norwegian press and television company.

The proportion of the Company invested in Scandinavian markets has fallen
slightly from just under 25% to about 20%.  In Finland, the holding in Nokia,
the mobile telephone manufacturer, was sold after the shares had performed
strongly.  The holding in WSOY, Finland's leading bookseller, performed
reasonably well and was also sold.  After a period of disappointing
performance, shares in Sampo Insurance were sold.  

A number of holdings in Italian companies were either reduced or sold
completely in the period, including transportation companies Aeroporti di
Roma, Alitalia, and Monrif, an Italian publishing company.  This contributed
to a decline in the proportion of the portfolio invested in the Italian
market.

Portfolio Performance
The portfolio performed well during the six month period when compared to the
benchmark index.  The relatively large proportion of the Company invested in
the French and Scandinavian markets helped performance.  The relatively low
proportion invested in the German market, which was one of the worst
performing markets, also helped the performance of the portfolio.

Among the largest holdings, BNP, Societe Generale and Paribas all performed
well, as investors recognised the value of a merged entity.  Credit Suisse
also performed well.  A number of the holdings in the telecommunications
sector stand out in terms of performance, including Telefonica, Mannesmann,
Esat, an Irish telecommunications company and Sonera, the Finnish national
phone company.

Among the more recent holdings, shares in Neopost, a French manufacturer of
mailroom equipment that was listed on the market earlier in the year, rose
strongly.  FT1 reported better than expected advertising revenues, which
contributed to a strong performance in its shares.  Club Mediterranee
benefited from take-over speculation.  Outside France, Amer Group, the Finnish
sporting goods company, reported that its restructuring efforts were bearing
fruit, which caused the share price to rise.

The Company also benefited from a broadening in the markets.  The performance
of small and medium-sized companies improved and investors sought out value
stocks. These are areas which we favour and feature in the portfolio.

Outlook
The outlook for economic growth among European economies appears to be
improving.  There have been signs that growth in the German economy,
particularly consumer spending, is picking up.  Outside Europe, economies also
appear to be strengthening.  This coupled with the weakness in the euro should
held boost European export prospects.  Economic growth in some of the
peripheral economies remains healthy.  While interest rates are unlikely to be
cut again, there does not seem to be a need for an increase in the near term.

The more optimistic outlook for the economy has meant that profits growth
forecasts are no longer being revised down as much as previously.  This is
helping to improve the attractiveness of equities.  We also expect corporate
restructuring and merger and acquisition activity to continue.  However,
investors have become more critical and look to companies involved to
highlight the advantages to shareholders of such action.  

The fact that European markets have not performed as well as other markets so
far this year holds out the possibility that the region's markets could
'catch-up' with others in the second half of the year.  The broadening of the
market is favourable for our investment style and should create more
opportunities for our stock picking approach to add value.

Share and Warrant Repurchases
Further to the authority granted by shareholders in April 1999, on 29 June
1999 the Company repurchased 148,000 shares at a price of 322.00p. On 29 April
1999 the Company repurchased 1,025,000 warrants for cancellation at a price of
231.50p.

Dividend
The Directors do not recommend the payment of an interim dividend.

27 July 1999

Enquiries: Barbara Powley - Fidelity Investments International 01737 836883




FIDELITY EUROPEAN VALUES PLC

STATEMENT OF TOTAL RETURN (incorporating the revenue account)*
for the six months ended 30 June - unaudited

                                  1999                     1998

                       revenue   capital   total    revenue   capital   total
                         £'000     £'000   £'000      £'000     £'000   £'000

Gains on investments         -    17,796  17,796          -    59,418  59,418 

Income                   4,411         -   4,411      4,349         -   4,349

Investment management 
fee                     (1,541)        -  (1,541)    (1,524)        -  (1,524)

Other expenses            (280)        -    (280)      (234)        -    (234)

Exchange (losses)/gains      -      (500)   (500)         -       200     200

Purchase of warrants
for cancellation (1)         -    (1,954) (1,954)         -    (2,532) (2,532)

Net return before finance
costs and taxation       2,590    15,342   17,932     2,591    57,086  59,677

Interest payable          (449)        -     (449)     (379)        -    (379)

Revaluation of Loan 
Stock (2)                    -      (160)    (160)        -   (11,086)(11,086)

Return on ordinary
activities before tax    2,141    15,182   17,323     2,212    46,000  48,212

Tax on ordinary
activities                (599)        -     (599)     (601)        -    (601)

Return on ordinary 
activities after tax for 
the period transferred  
to reserves (3)          1,542    15,182   16,724     1,611    46,000  47,611

Return per ordinary share (4)
Basic                    2.66p    26.21p   28.87p     2.80p    79.87p  82.67p
Fully-diluted            2.48p    24.38p   26.86p     2.54p    72.44p  74.98p


* the revenue column on this statement is the profit and loss account of the
Company.


BALANCE SHEET
                                   30.06.99         31.12.98         30.06.98
                                  unaudited          audited        unaudited
                                      £'000            £'000            £'000

Investments                         275,553          263,404          271,180

Current Assets
Debtors                               1,496            1,545            1,987
Securities sold for 
future settlement                     1,549               78            3,059
Cash at bank                          8,632            2,561            6,682

Creditors - amounts falling
due within one year                  (5,421)          (1,876)          (3,792)

Net current assets                    6,256            2,308            7,936

Total assets less 
current liabilities                 281,809          265,712          279,116

Creditors - amounts falling due
after more than one year            (50,646)         (50,486)         (50,121)

Total net asset                     231,163          215,226          228,995

Capital and reserves
Called up share capital              14,463           14,473           14,473
Share premium account                50,930           50,803           50,803
Capital redemption reserve               37                -                -

Other reserves
Warrant reserve                       2,293            2,757            3,116
Capital reserve - realised          150,613          131,868          123,103
Capital reserve - unrealised          9,815           13,855           34,805
Revenue reserve                       3,012            1,470            2,695

Total equity shareholders' funds    231,163          215,226          228,995

Net asset value per 
ordinary share (5)
Basic                               399.58p          371.78p          395.56p
Fully-diluted                       373.06p          343.39p          361.14p


The above statements have been prepared on the basis of the accounting
policies set out in the most recently published set of annual financial
statements.
The balance sheet as at 31 December 1998 has been extracted from the accounts
for the year ended 31 December 1998 which have been delivered to the Registrar
of Companies and on which the auditors gave an unqualified report.


CASH FLOW STATEMENT
for the six months ended 30 June - unaudited

                                                       1998             1997
                                                      £'000            £'000

Net cash inflow from operating activities             2,150            1,613

Interest paid                                          (618)            (300)

Tax paid                                                  -              (95)

Net cash inflow from financial investment             7,151            6,588

Equity dividend paid                                   (347)            (345)

Net cash outflow from financing                       (2,264)          (2,576)

Increase in cash                                      6,072            4,885



Notes to the Accounts

1  Warrant buy backs and exercises
During the period, the Company purchased 1,025,000 warrants for cancellation. 
On 30 April 1999, 108,654 ordinary shares of 25p were issued and allotted,
fully paid at a price of 100p, following an exercise of warrants.  The number
of warrants in issue at 30 June 1999 was 5,619,128. 

2  These accounts have been prepared in accordance with the AITC Statement of
Recommended Practice (SORP) issued in December 1995 with the exception of the
treatment of the Loan Stock.

Although the Company has adopted a policy of charging all finance costs and
expenses to the revenue account in the Statement of Total Return, the Board
considers that the revaluation element of the Loan Stock, which is an element
of the overall finance cost, should be taken to capital reserves.  By adopting
this treatment, the revaluation of the Loan Stock is matched against capital
appreciation or depreciation of the investment portfolio, in which the
original proceeds of the Loan Stock were invested.

3  Return on ordinary activities
Attributable to equity shareholders.

4  Return per ordinary share
Basic returns per ordinary share are based on the return on ordinary
activities after taxation of £1,542,000 (1998 : £1,611,000) and the capital
appreciation in the period of £15,182,000 (1998 : £46,000,000) and on
57,927,319 ordinary shares (1998 : 57,594,685) being the weighted average
number of ordinary shares in issue during the period.  According to the
provisions of FRS14, the fully-diluted returns have been calculated on the
assumptions that the warrants in issue were converted on the first day of the
financial period on a weighted average basis for the period over which they
were outstanding, and that the proceeds from the conversion have been used by
the Company to purchase its own shares at a fair market price.  The
comparative fully-diluted returns for 1998 have been restated under the basis
of FRS14 as the effect of the change in method of calculation is considered
material.

5  Net asset value per share
As at 30 June 1999, 57,851,355 ordinary shares were in issue (31 December 1998
and 30 June 1998 : 57,890,701). During the period, the Company made authorised
market purchases for cancellation of 148,000 of its own ordinary shares of
25p.

6  Loss of investment company status
A technical consequence of the share buy back is that the Company ceased to be
an investment company within the meaning of s266 , Companies Act 1985. 
However, it continued to conduct its affairs as an investment trust for
taxation purposes under s842 of the Income and Corporation Taxes Act 1988 and
the Articles of the Company prohibit capital profits from being distributed by
way of dividend.  As such, the Directors consider it necessary to continue to
present the accounts in accordance with the Statement of Recommended Practice
'Financial Statements of Investment Trust Company' (the SORP) other than in
respect of the treatment of the Loan Stock.  Under the SORP, the financial
performance of the Company is presented in a statement of total return in
which the revenue column is the profit and loss of the Company.  The revenue
column excludes net profits on disposals of investments, calculated by
reference to their previous carrying amount of £21,677,000 (1998 :
£30,718,000).

Copies of the Interim Report will be posted to shareholders as soon as
practicable.  Copies will also be available to the public at the Company's
registered office: Beech Gate, Millfield Lane, Lower Kingswood, Tadworth,
Surrey KT20 6RP